Growing challenges in purchasing are confronting many companies with the question: is an ERP system still enough? Manual processes, a lack of transparency and increasing compliance requirements make it clear that conventional systems are reaching their limits. SMEs in particular need flexible and data-driven solutions in order to manage suppliers efficiently and identify risks at an early stage.
Watch our webinar to find out how NEDSCHROEF is transforming its purchasing, automating processes and creating a 360° view of its suppliers with an SRM tool from Tacto.
In today's purchasing world, ERP systems are increasingly reaching their limits. Although they are indispensable for operational processes, they are often too rigid and inflexible when it comes to strategic supplier management, risk assessments or compliance. A supplier relationship management (SRM) tool can close a crucial gap here. Catharina Golz (Global Procurement Director at NEDSCHROEF) and Julius Reinboth (Customer Development at Tacto) show what this looks like in practice.
Like many companies, NEDSCHROEF was faced with the challenge of efficiently managing a large number of suppliers. The company operates 26 locations in 12 countries and works with several ERP systems simultaneously. The consequence:
These challenges made it necessary to transform the purchasing processes.
To understand why an SRM tool has become indispensable for companies like NEDSCHROEF, it is worth taking a closer look at the differences and interfaces between an ERP system and an SRM system. Both systems play a central role in the purchasing process, but have different purposes and complement each other perfectly.
An Enterprise Resource Planning (ERP) system is a central software solution that maps all of a company's business processes. It serves as a database for all operational processes, particularly in the following areas:
In purchasing, ERP systems are primarily used for order processing, invoice processing and master data maintenance. They ensure that suppliers are created, orders are triggered and goods receipts are posted.
However, ERP systems often reach their limits when it comes to strategic purchasing processes. This is because, while they are ideal for transaction processing, they often lack:
This is where the SRM system comes into play.
A Supplier Relationship Management (SRM) system is specialized software for strategic supplier management. While the ERP system focuses on operational processes, the SRM tool helps to manage and optimize supplier relationships in the long term.
The main functions of an SRM system include
ERP and SRM systems should not be seen as competitors, but as two complementary tools. In an ideal purchasing strategy, the ERP system takes over operational processing, while the SRM system enables the strategic management of supplier relationships.
To compensate for the limitations of the ERP system, NEDSCHROEF decided to introduce an SRM system from Tacto. The choice was deliberately made for a tool that could be seamlessly integrated into the existing system landscape without the high implementation costs of an additional ERP module.
The advantages of an SRM tool over ERP systems are obvious:
The implementation was completed in just six weeks - an amazingly fast rollout for a company of this size.
Before the SRM tool was introduced, supplier evaluations were carried out in a decentralized and location-dependent manner - usually in Excel. As a result, suppliers at different locations were evaluated differently and there was no transparent overview.
With the new system, NEDSCHROEF:
Especially in the automotive industry, where strict quality standards apply, a transparent and comprehensible assessment is crucial.
Another problem was preparing for supplier meetings. Before the SRM tool was introduced, purchasing managers had to gather information from various systems and emails.
All relevant information - from sales data and previous assessments to current action plans - is now available on a single platform. This not only saves time, but also increases the quality of discussions, as decisions are made based on data and not on instinct.
NEDSCHROEF's experience shows that the introduction of an SRM tool is not only a technical challenge, but above all an organizational one. The decisive success factors were:
1. internal communication: Involve employees at an early stage and communicate the benefits clearly.
2. step-by-step implementation: start with a clear focus (e.g. supplier evaluation) and roll out the tool gradually.
3. regular training sessions: To increase acceptance, weekly training sessions were offered.
4th management level as a driver: Support from management was essential to drive the change forward.
The introduction of an SRM tool at NEDSCHROEF has shown that an ERP system alone is not enough to future-proof purchasing. By using Tacto, the company was able to automate processes, make data more transparent and optimize collaboration between locations.
For companies that are still struggling with manual processes or have difficulty meeting compliance requirements efficiently, an SRM tool can be a crucial investment in the future.
The digitalization of procurement will continue to accelerate. In the future, topics such as artificial intelligence for risk analyses, automated sustainability assessments and predictive analytics will play an increasingly important role. Companies that invest in flexible and data-driven systems at an early stage will have a long-term advantage.